Traditional bank wires and PayPal charge 3–5% to pay contractors internationally. Digital asset rails cost a fraction of traditional alternatives — significantly cheaper for every payment.
Paying contractors internationally via bank wire typically costs $25–50 per transfer plus an FX markup. For a company with 10 international contractors each paid monthly, that's $3,000–6,000 per year in avoidable fees.
International transfers come with two types of cost: the explicit transfer fee, and the hidden FX markup baked into the exchange rate. Together they can add up significantly on traditional services. Digital asset rails (USDC on Stellar, Tron, Solana, and other chains) cut this to a fraction by removing the FX spread entirely. RemitRoutes ranks every option by total all-in cost so contractors can make a fair comparison before sending.
The crypto rail path: (1) buy USDC on a local exchange like Coinbase, Kraken, or Gemini; (2) send via a low-cost blockchain — Stellar settles in seconds for under $0.01 in network fees, Tron and Solana are similar; (3) the recipient sells USDC for local currency on a local exchange and withdraws to their bank account. The total cost includes the on-ramp fee, the network fee, and the off-ramp spread — all measured by RemitRoutes for every supported corridor.
For contractors, the key corridors covered by RemitRoutes include major destinations in Africa (Nigeria, Kenya, Ghana, South Africa), South Asia (India, Philippines, Pakistan, Bangladesh), Southeast Asia (Indonesia, Vietnam, Thailand), Latin America (Mexico, Brazil, Colombia, Peru), and others. Use the comparison tool to see the exact cost for your corridor and amount.
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The cheapest method is digital asset rails: buy USDC on Coinbase or Kraken, send via Stellar or Tron (for near-zero network fees network fee), and the contractor converts to local currency on a local exchange. Total cost is typically very low. Wise is the next best option. Avoid PayPal and bank wires for regular contractor payments. RemitRoutes compares all options live for your specific corridor and amount.
It depends on your priority. For lowest cost, digital asset rails via USDC on Stellar or Tron are unmatched at a fraction of traditional costs. For ease of use with a familiar interface, Wise Business offers competitive rates with competitive fees and batch payment support. For contractors who only accept PayPal, you are stuck with their higher fees. RemitRoutes helps you compare all these options by corridor so you can make an informed choice for each contractor.
In most jurisdictions, paying contractors in cryptocurrency is legal and treated as payment in kind. The contractor reports the fair market value as income on the date received. Using a stablecoin like USDC simplifies accounting since its value is pegged to the US dollar. Both you and the contractor should keep records of each transaction for tax purposes. Check local regulations in both your jurisdiction and the contractor's country, as some countries have specific reporting requirements.
When paying international contractors, you generally do not withhold taxes — contractors are responsible for their own tax obligations in their country. You may need to collect a W-8BEN form (for US companies paying non-US contractors) and report payments over $600 on Form 1099-NEC. The payment method (bank wire, Wise, or crypto) does not change the tax treatment. Keep records of all payments including dates, amounts, and exchange rates used.
Compare live rates across 370+ corridors on RemitRoutes · methodology.